AYR Wellness Finalizes Senior Secured Bridge Credit Deal

AYR Wellness Inc. Secures Funding for Restructuring

• Bridge Credit Agreement: AYR Wellness Inc. has entered into a definitive senior secured bridge term loan agreement, providing up to $50 million in funding to support ongoing operations and facilitate a restructuring plan announced on July 30, 2025.
• Loan Structure: The agreement includes multiple-draw senior secured term loans, with Tranche A and Tranche B loans designated for specific purposes, including working capital and the wind-down of non-core assets.

Purpose and Use of Funds

• Funding Allocation: Proceeds from Tranche A will be used for working capital, corporate expenses, and costs related to the Sale Transaction, while Tranche B will fund the court-supervised wind-down of non-core assets.
• Budget Approval: The use of funds is contingent upon approval from lenders holding a majority of the commitments under the Bridge Facility.

Loan Terms and Conditions

• Interest and Maturity: The loans carry an interest rate of 14.0% per annum, with Tranche A maturing either 60 days post-closing or by November 16, 2025, and Tranche B maturing by February 19, 2026.
• Covenants and Defaults: The agreement includes various covenants, such as maintaining cannabis licenses and a minimum liquidity requirement of $17.5 million, with events of default including payment defaults and insolvency events.

Future Implications

• Conversion to Take-Back Facility: Upon the effective date of the Sale Transaction, all outstanding principal and accrued interest under the Bridge Facility will convert into a new senior secured "take-back" term facility.
• Forward-Looking Statements: The company acknowledges potential risks and uncertainties that could affect the anticipated outcomes related to the restructuring and future financial performance.

Company Overview

• AYR Wellness Profile: AYR Wellness is a leading multi-state cannabis operator in the U.S., with over 90 licensed retail locations across several states, offering a diverse range of cannabis products and consumer brands.